A funded trader is a trader who has successfully completed a prop firm’s evaluation and has been granted access to the firm’s capital to trade live markets. The trader operates within the firm’s guidelines and receives a percentage of any profits they generate, without using their own money.

Becoming a funded trader is the primary objective for most people who enter the prop firm space. It allows a trader to operate at a significantly larger account size than they could personally afford, which increases the financial impact of a strong trading strategy. Profit splits for funded traders typically fall between 70 and 90 percent, depending on the firm and program.

Maintaining a funded account requires consistent adherence to the firm’s trading rules. This includes staying within loss limits, managing position sizes appropriately, and avoiding any strategies that the firm has restricted. Many firms also offer account scaling programs, where traders who demonstrate consistent profitability over time are given access to progressively larger amounts of capital.